Not only are faster payment tools bringing helping to exchange funds at a quicker pace, but these solutions are also transforming the certain aspects of the gig economy and spurring investments in new payment infrastructures.
The June Faster Payments Tracker™, powered by NACHA, highlights the latest trends and developments on how banks and FinTechs are investing in faster payment infrastructure and how these payment technologies are altering the way business is conducted.
News from the World of Faster Payments:
First, at the NACHA PAYMENTS 2017 conference earlier this year, FinTech solutions provider SwapsTech announced its plans to develop a new payment network (described as the “Mother of All Payments” by the company) that will use unique payment address solutions instead of sensitive bank information such as bank account or credit card numbers. But SwapsTech’s investment is not the only FinTech to network investment on the faster payment scene. Three other companies — Vocalink, SIA and CGI — are working to upgrade Canada’s payment infrastructure.
Beyond payment infrastructure, other companies are investing in real-time payment solutions. ACI Worldwide, for one, is offering its cloud-based UP Immediate Payment solution to U.S. banks and credit unions to help these institutions gain access to The Clearing House (TCH) and Zelle networks and cut the costs of real-time payment systems and quicken the time it takes for financial institutions to bring real-time payment solutions to market. TCH is also working with FIS on an incubator service to offer financial institutions a testing environment for real-time payments without requiring them to make significant investments.
Financial institutions are also making heavy investments in bitcoin technology to expedite the delivery of payments, especially in the cross-border space. The past few weeks saw a group of 10 global banks join Ripple’s network. One of the banks, BBVA of Spain, utilized Ripple’s technology to make 50 payments in Euros between Spain and Mexico in a matter of seconds. In addition to enabling banks to offer faster cross-border payments, the solutions are also offering financial institutions important data on B2B payments.
Check out the Tracker’s News and Trends section for the latest developments from around the space.
Faster Payments, Faster Pathways to Professionalism for Caregivers
Along with disrupting operations for banks and FinTechs, faster payments solutions are shaking things up in certain segments within the growing gig economy, including the market for caregivers — jobs which include working in assisted living, senior care and home health — which is realizing the benefits of these tools as well. The availability of faster payment solutions is changing the way many freelancers, gig nannies, babysitters and house sitters get paid for their services by sending the funds directly to their bank accounts instead of relying on cash or paper checks.
But faster payments aren’t just allowing caregivers to get paid more efficiently. According to Bryan O’Malley, VP and GM of payments for caregiving marketplace Care.com, faster payments are also offering caregivers access to the same professional benefits that have typically been reserved for traditional full-time workers.
For the June Tracker feature story, PYMNTS spoke with O’Malley about how faster payment solutions are giving caregivers access to benefits like health care, dental care and tuition benefits and how the change in payment options is changing the dynamic between employers and employees.
Check out June’s Faster Payments Tracker™, powered by NACHA, to read the feature story, along with a roundup of all the latest news and trends from around the faster payments space.
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About the Tracker
The PYMNTS Faster Payments Tracker™, powered by NACHA, is your go-to resource for staying up-to-date on a month-by-month basis. The Tracker highlights the contribution of different stakeholders.